Dubai is the second largest emirate of the United Arab Emirates and has a thriving business set up. The business set up in Dubai is nothing new to anyone who has visited the city; however, having a UAE business license will ensure that you are complying with all the necessary regulations that are aimed at ensuring that business in Dubai is conducted in an organized and legal manner. There is no doubt that Dubai is still a developing tourist destination but its business sector is growing and well supported. Dubai is the second-fastest growing economy in the world after London and has established itself as one of the leading business destinations in the world.
For people wishing to conduct business in Dubai, obtaining a Dubai trade license is essential. Dubai is a very small emirate and there are many differences between it and other countries that can have a profound effect on your business’ success or failure. Like all emirates, Dubai has a system of taxation that is based on the income of the expatriate. This means that there are no direct taxes on work or any other income such as that coming from an offshore account. Because there are no direct taxes, this means that the earning capacity of an individual or family is limited which requires careful planning.
In order to be granted a Dubai trade license, you will need to apply for a visa. The first thing to do is to contact the Ministry of Economic and Business Affairs. The Mebah ministry is the only authority in charge of immigration and all visa applications must be approved by them. Once you have obtained a visa, you will be able to proceed with the process of obtaining a business license.
Like all emirates, the requirements to obtain a Dubai trade license include proof of residence, a written contract that stipulates the type of work to be done, evidence of financial capability, and the ability to hire workers. Before being approved for a license you will also need to provide several documents. These include a registration certificate, a business permit that is renewed on schedule every year, a statement of the value of your property that is signed by the general authority, and a copy of the national ID card. This will enable the authorities to check if the applicant is a resident of the emirate. If he is not, the document must be renewed yearly.
Each business setup will have its own set of rules and regulations that will be strictly enforced. As a new investor in Dubai, one must understand these rules so that he is not penalized. There are several ways of obtaining a Dubai trade license. Some of the common ways include:
Applications can be made with the help of the Dubai Ministry of Economic and Business Affairs by contacting them directly or via their accredited agents. In order to start the business, an establishment card or an original registration certificate is required. In case you already have an existing business you can apply for a business license to run your business legally. Just a business license application will not serve any purpose without the existence of other important documents such as the e-tender or the registration certificate. You may visit the government’s website to download all the necessary documents required for the application. All these documents are available in English.
Once the business is established, you may have to pay the prescribed business taxes and the Dubai trade license fees. However, after paying the required fees, it will be important to get the license renewed regularly. If you are planning to expand your business, then you need to get an extension and this process is quite cumbersome and time-consuming.
The second most important document that is required to start a new business is the commercial register. This is known as the MBA or the commercial register of Dubai. By owning a commercial register, you will be able to know all about your company name, its official address, the shareholders, and the directors. The MBA is valid for three years and you need to renew it every year.
What You Should Consider For Setting Up Your Business
Business setup in Dubai has witnessed a remarkable change over the past few years. The city is not only home to some of the most opulent and lavish hotels in the world, but it also forms one of the largest trading centers on the globe. Being one of the fastest developing countries in the world, Dubai is fast becoming a corporate hub for many international businesses. However, there are still a lot of things that need to be done when setting up a business in Dubai. In order to start a business in the UAE or any other Arab country, the following points would be useful to consider.
A business setup in Dubai can either be domestic or international. While planning for the latter, there are three essential factors that must be kept in mind. These factors are location, industry, and cost.
Location plays a very crucial role in terms of ease of operation and bringing in revenues. This holds true for both, domestic and international. In the case of a business operating within the UAE, the business address should be at a place that is easily accessible by people. An example of such a location would be at a place near a major commercial airport, financial institutions, schools, and other businesses that a particular community may find useful in its day-to-day business operations. On the other hand, if you set up an international business, you will have to ensure that your location has an international airport as well as relevant ports, seaports, and other relevant infrastructure so that your products can reach foreign shores and markets. Similarly, if you are considering setting up a business setup in Dubai, you should check out the availability of a good port or seaport at your chosen location.
The industry is another important factor that will determine your business’ suitability for success. If your business caters to a specific field like food or construction, you might want to consider a special business-type just to get that ball rolling. But if you are looking to set up a business that spans across various industries, you should have a look around at the different business setups in Dubai to get a feel of the type of demand there is for such services. Just like with any other business, specialized knowledge is required for successful implementation in Dubai.
The kind of environment in Dubai that you want to operate your business is another critical factor. You will have to check out the licensing requirements of the city’s governing bodies so that you are not put to a hassle later on. This is one thing that you do not want to overlook because even after you get your license, you will still face restrictions when it comes to certain types of operations. Dubai government will not hesitate to fine companies or individuals that flout the law, so always remember to follow the law and carry out all the procedures necessary for registration.
Finally, when it comes to financing, you can choose from the available bank sources. Dubai money is very cheap due to the low demand for its currency and so you can save some money during the start-up of your business setup in Dubai. However, you will have to ensure that you get your share of interests with the loan. You may look into the possibility of applying for a business loan from any of the banking institutions in Dubai to help you out during this crucial stage of the business.